Salceda proposes P45B wage subsidy for SMEs, freelancers

MANILA, Philippines — Albay Rep. Joey Salceda on Saturday proposed a wage subsidy worth P45-billion that will benefit 5.98 million workers in small and medium enterprises, and freelancers affected by the enhanced community quarantine being implemented to arrest the spread of coronavirus disease (COVID-19).

The House Ways and Means Chair argued that the income of those mentioned have taken a hit during the enhanced community quarantine that has been extended until April 30.

Salceda proposed that the wage subsidy be distributed for three months.

“I wrote to President Duterte today to recommend to him that we begin calibrating a wage subsidy program for small and medium enterprises, as well as for those in the gig economy,” said Salceda.

“We will need these enterprises to operate, so it’s essential for the economy and for job preservation that we lend them a helping hand,” he added.

Salceda said that his proposal will work as a “payroll support program” that will support micro, small and medium enterprises (MSMEs) during the ECQ.

The solon further said that this scheme will also provide relief to formal economy workers, entrepreneurs, and self-employed individuals who belong to the middle class.

Freelancers will also be able to avail of the package.

The national government has already implemented the social amelioration program, through the Department of Social Welfare and Development, but only low-income families are eligible to receive aid that ranges from P5,000 to P8,000.

Salceda estimated that MSMEs employ around 4.1 million formal economy workers, while there are some 380,000 solo entrepreneurs, and 1.5 million freelancers.

With the average monthly minimum pegged at P9,500, the beneficiaries will receive a third of that amount, or roughly P2,500 to P3,000, per month for two months.

The Social Security System, Salceda said, will be the one who will distribute the aid together with the Bureau of Internal Revenu and Department of Labor and Employment for formal economy workers.

Salceda also proposed an “open-application window similar to the COVID Adjustment Measures Program (CAMP)” for freelancers.

EDV